Presentation to AICC Region 4

1. Presentation to AICC Region 4 Draft voluntary standard for repulping and recycling corrugated treated for moisture protection May 5, 2005 Dallas

2. Corrugated Packaging Alliance • A corrugated industry initiative jointly sponsored by the American Forest & Paper Association (AF&PA) and the Fibre Box Association (FBA) • Mission: • To foster the growth and profitability of corrugated in applications where it can be demonstrated, based on credible and persuasive evidence, that corrugated should be the packaging material of choice; and • To provide a coordinated industry focus that effectively acts on industry matters that cannot be accomplished by individual members.

3. Moisture Barrier Alternatives GOAL: To retrieve 100% of all corrugated in the normal OCC recycle stream. ACTION STEPS: • Encourage the development and use of recyclable products by member companies • Develop an industry-wide recyclability test • Consistently mark all corrugated that can be recovered in the normal OCC recycle stream • Encourage the development of iceless cooling solutions

4. Corrugated Packaging Alliance • Directed by: Joint Committee of AF&PA and FBA members • Co-chairs: Bart Doney (Temple-Inland) and Jim Keller (Weyerhaeuser)

5. CPAActions Taken 2002 Rescinded former Draft Standard because • Required separate recycle stream • Testing and claims were proceeding even though separate recycle stream was deemed impractical by retailers and collectors Commissioned study of current practices

6. CPAActions Taken 2003 - Quantitative research with FBA members • 18.4 MM MSF (4.8%) being treated • 1.4 MM tons (5.4%) • Current replacement penetration 9% • Lots of products with recyclability claims • Lack of standard inhibits development efforts

7. CPAActions Taken 2003 • CPA Poll of Retailers • 73% negative on wax (Willard Bishop 12/03) • Winn-Dixie and Kroger ask suppliers to stop sending wax • Wal-Mart declares they have found substitute: RPC • Retailers assume all alternatives can be recycled.

8. CPAActions Taken 2004 • CPA and sponsoring organizations (AF&PA and FBA) vote to renew standard work: “The ad hoc Moisture Barrier Recyclability Standard Committee is to develop and recommend criteria for testing and verification of the claim of repulpability and recyclability of wax substitute and modified wax products on combined corrugated board… with a goal to help protect the volume, quality, value and image of our industry and its products at a time of questionable future demand.”

9. Participating Company Members of Ad-Hoc Committee

10. Legal Oversight • Antitrust • Standard setting activities • Forum in Chicago - 3/21/2005

11. Draft Voluntary Standard • Initial press release – 2/1/2005 • Posted on website – 2/1/2005 http://cpa.corrugated.org/info/WaxStandard.pdf

12. Draft Voluntary StandardIntroductory Section • Introduction • Purpose • Scope • Definition of Key Terms

13. Draft Voluntary StandardTest Method Section • Part One – Repulpability • Laboratory scale method • 100% charge of treated corrugated, 1 ¼”x4” pieces • Blender/Disintegrator • Screening step - Accepts measured for fiber yield • Repeat Repulpability Test procedure - 2 sets of tests to confirm repulpability of treated product • Detailed procedures in Appendix A

14. Draft Voluntary StandardTest Method Section • Part Two – Recyclability • Pilot plant scale method • 20% treated corrugated/80% untreated control • Control must be same material as used in the treated board • Pulping, 7-in. x 15-in. strips • Screen with 0.0625-in. holes • Screen accepts with 0.010-in. slots

15. Draft Voluntary StandardTest Method Section • Part Two – Recyclability (cont’d.) • Pass accepts through a lightweight reverse centrifugal-type cleaner • Form handsheets with pulp accepts • Physical properties tests • Stickies/Spot count test • Repeat Recyclability Test procedure • Detailed procedures in Appendix B

16. Draft Voluntary StandardPerformance Levels Section • Fiber yield requirements • Operational impact requirements • Product requirements • Appearance • Angle of slide • Water drop penetration • Short span compression • Bursting strength

17. Draft Voluntary StandardCertification/Marking Section • Manufacturers of the boxes may certify compliance (if product passes protocol) • Any capable laboratory may be used • Special modified Corrugated Recycles symbol • Box manufacturer’s name & location required

18. Draft Voluntary StandardTest Report Section • 9-page test report section - 7 page test report - 2 page submission form • Test report signed by Laboratory Manager • Submission form signed by an Officer of the Company - Sent to FBA with test report form

19. Review of CommentsOverview • Approximately 20 people submitted comments and questions • More than 60 comments and questions received • Multiple people commented on several of the same issues • Questions reviewed by Committee March 16-17

20. Forum • Chicago, March 21, 2005 • Approximately 45 participants • Presented Overview of Draft Standard & Committee effort • Presented responses to questions & comments • Open floor for discussion

21. Forum Attendees

22. Recent Activities • Committee met to discuss additional questions • Thorough review of major issues • Draft Protocol revised & recommended to: • CPA Directors • AF&PA Containerboard Executive Committee • FBA Executive Committee • AF&PA Recovered Fiber Executive Committee • All groups directed us to proceed

23. Recent Activities and Plans • Revisions to the Draft Protocol based on comments from Forum & associations’ committees and boards • Final legal review • May 15 goal for adoption

24. A Final Note Please note that the protocol is not final. It may change, or its issue may be delayed or precluded, until it passes the votes of the two associations’ governing bodies and a final legal audit.